St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-05-01

THE ST. PAUL BANKS.

| poSSeSSOrS OF wealth, aifu 10 nurture Il
belief in the existence of natural all
tagonism between capital and labor, it
is not probable that there are many in
telligent thinking persons in this coun-
try to-day, even among those who are
entirely dependent upon their labor for
! their support, who do not detect the
Righteousness of the arguments thus put
forth, or who fail to recognize the adj
vantage to themselves, either directly
or Indirectly, of an accumulation of cap
ital in the community in which they re-
side. Wealth, even in private hands,
as it must be employed to be of value
| to the poSSesSOr becomes to certain
extent public possession, adding its
| proportionate share to the producing
capacity of the community where it is
used, and thus contributing to the gen
eral good.
But, while even private wealth is I'M
doubtedly public benefit. it is when
| capital takes an organized form for GER
tain specific purposes that its direct adj
vantage to the general public is most
readily perceived. Although banks
have sometimes been especially singled
| ont by those who rail against capital as
the particular objects of their at
tackS there. is perhaps no form
in which capital has ever been
organized where it has been such
direct factor in the advancement
of civilization and the amelioration of
the condition of the human race as when
aggregated in these institutions. While
most of the rest Of Europe, including
England, was, at the beginning of the
Fourteenth century, still sunk in the
grOSSness and ignorance of the dark
ages, and the condition of the great
mass of the common people was little
better than that of serfS and slaves,
Florence, where banking originated, had
already become rich and powerful, the
center of the new civilization which was
at last just commencing to slowly
emerge from the semi-barbarism which
had succeeded the destruction of the
old civilization of Greece and Rome, and
the home of 17O, 600 people, whose average
condition was probably superior to that
OF any equal number congregated at
that time anywhere else in the world.
The banks located there conducted the
financial and commercial operations not
only OF Florence, but of all Europe, and
the magnitude of some of their transac-
lions would compare favOrably with
those of the largest similar establish
mentS Of modern times. In consequence
of the judiciouS employment Of the capt.
tai aggregated in these banks, the mate
rial resources of Florence were devel-
oped with rapidity and to an extent up
to that time unparalleled in the history
Of cities. Manufactures were estab-
liShed which in wool alone occupied two
hundred factories and employed thirty
thousand w0rkmen, and the average
annual product from which amounted
to sum equal to not less than
So, 0O0, 900 of our money. The goods
thus produced were sold in every city
in Europe and became the basis for the
credits against which the Fiorentine
and Lombard bankers drew their drafts,
creating an entire and economic revolu-
ton in the manner in which funds had
previously been transmitted from coun-
try to country and place to place. Traced
from that early period down to the pres
ent time, it will be found that the banks
have invariably represented the labor
as well as the capital and commerce of
the countries and cities in which they
have been located, and that when prop
erly organized and conducted they have
been of inestimable benefit to the COM
munitieS in which their operations have
been carried on, and to the poor as well
as to the rich. But while banks, in
common with the public press and the
public schools, are perhaps generally
recognized as among the best and most
powerful products of modern ciyiliza-
ton, there are many who are even in
constant relations with them who have
but vague idea of the principles upon
which they are organized or of the
proper and legitimate scope of their
functions. A bank is simply a plan of
organizing capital by which the full
benefits OF it are secured. The separate
means OF individuals are united to-
gether and large sum thus cons. .tuted
which, under certain conditions. is
loaned to those who need it. This COM
binatiOn and the manner of its use NAV
be compared to dam across a
valley and the accumulation in one
body of the water of the separate springs,
which otherwise would be of little ser
vice; but, being united, they form pro
polling power for extensive machinery.
While the primary object OF those Or
ganiZlng banks may be, and properly
so, the expectation of realizing a profit
for themselves, the functions of g bank
are so various, and the sphere of its
operations 50 extensive that sometimes
| the public interests depending upon it
| become so great as to make those of it's
stockholders seem comparatively of
small Importance. Such being the char
acter of these institutions and the i'm
| portant position they occupy in the
modern social structure, it will be seen
how necessary it is that they should be
surrounded by the safeguards of proper
laws, and their control in the hands of
those who will exercise wise discretion
in the administration of their affairs.
In all the systems yet deYised none have
probably worked better in practical
operation than that provided for by
the national bank act of the United
| States, and it is to be regretted that con-
gress has not seen the Importance of
doing something to perpetuste system
which has proved so satisfactory to the
entire country, and in regard to the
merits Of which there can be 10 differ
ence of opinion among. those competent
to judge.
Thus much in premise. Referring
now especially to the banks of St. Paul
and their history as connected with